Centre for Entrepreneurs
Launched in October 2013, the Centre for Entrepreneurs promotes the
role of entrepreneurs in creating economic growth and social
well-being. It is home to national enterprise campaign, StartUp Britain.
The Centre is an independent non-profit think tank founded and
chaired by Sunday Times columnist and serial entrepreneur Luke
Johnson, and housed in the Legatum Institute - a non-partisan
charitable think tank best known for its annual Prosperity Index.
It is supported by a prominent advisory board including serial
entrepreneur and investor Brent Hoberman, angel investor Dale Murray,
Supper Club founder Duncan Cheatle, Betfair founder Ed Wray, and
finnCap founder Sam Smith.
Barclays
Barclays is an international financial services provider engaged in
personal, corporate and investment banking, credit cards and wealth
management with an extensive presence in Europe, the Americas,
Africa and Asia. Barclays’ purpose is to help people achieve their
ambitions – in the right way.
With 325 years of history and expertise in banking, Barclays operates in
over 50 countries and employs over 130,000 people. Barclays moves,
lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website
www.barclays.com
2
About this report
This report was authored by Sarah Fink from the Centre for Entrepreneurs.
The research design and analysis was conducted by Emily Haisley, Barclays
Behavioural and Quantitative Finance. This initiative was led by Jagdeep
Rai, Barclays Corporate Bank and Matt Smith, Centre for Entrepreneurs. The
delivery team consisted of Lauren Hancock and Sujata Devi, Barclays.
Acknowledgments
We would like to thank the wide range of entrepreneurs, investors and
organisations that shared their advice, insights and perspectives with us
during the course of our research. In particular, we would like to thank the
entrepreneurs and businesses involved for sharing their challenges and
successes. These stories motivated this exploration of the unique needs,
mindsets and business objectives of women.
Special thanks to the Government Equalities Office (GEO) for their
engagement and expertise on this topic.
Many thanks to WEConnect International and Enterprising Women for their
input into the survey and providing access to their networks to supplement
data collection.
Dr Susan Marlow, Nottingham University Business School, and Dr Shima
Barakat, Judge Business School, Cambridge. As leading experts on female
entrepreneurship they provided invaluable input during the early stages of this
research that shaped our thinking.
This research would not have been possible without support from the Barclays
Social Innovation Facility.
3
Foreword
The economic empowerment of women and the rise of
of the entrepreneurial economy are two defining trends
of our time.
In this report, the Centre for Entrepreneurs has
the number of women on professional boards, we
partnered with Barclays to unravel how gender
need to address the barriers to entrepreneurship for
influences entrepreneurship, with a particular focus
women. Currently, women are underrepresented in
on the perspective and experience of women
business creation not just in the UK, but globally.
entrepreneurs. This provides us with a better
understanding of what women face in their first year
We need more women entrepreneurs because their
of business, beyond the start-up phase, and looking
role in fostering prosperity is clear.
into the future.
They are not only achieving higher profits and taking
This report is compelling because the findings
home a higher income than their male counterparts,
shatter the stereotypes that many of us hold about
they also demonstrate a commitment to growing a
the entrepreneurs who are growing businesses
profitable business and providing stability for their
and powering the UK economy: the women in this
employees.
research show stronger entrepreneurial ambitions
than their male counterparts.
Our hope is that this in-depth look at women in
business will provide policymakers, investors, the
But there is more to do.
media, and entrepreneurs themselves – as well as
those considering such a move – with the evidence to
Whilst there has been significant growth in the
look beyond the stereotypes regarding what makes a
number of women rising to C-suite executive levels
successful entrepreneur.
and companies have adopted policies to boost
Sian Hansen
Executive Director of the Legatum Institute
Non-Executive Director of the Centre for Entrepreneurs
4
Foreword from Barclays
At Barclays, we are passionate about helping
businesses to grow, from start-up to multinational.
It is always a personally rewarding experience meeting
clients and working with them to deliver solutions that
will help achieve their business ambitions.
Entrepreneurship brings huge value to the UK
The latest studies show women are still
economy, driving growth, jobs, innovation and
underrepresented in business, leading only 19% of
helping to foster the kind of export mentality the UK
UK small and medium enterprises. Barclays is actively
needs to succeed on a world trade stage.
engaging with business women and committed
to providing the support they require to achieve
The number of new businesses in the UK in the
their ambitions. This report examines how positive
last six months of 2014 increased by 3.7%1, and is
commercial and societal impact can be created by
expected to rise; therefore it is vital the emerging
better understanding the needs of business women
entrepreneurial economy is supported. Banks play
and supporting the growth and expansion of their
an important role, with the specialist support we
business. The results provide a real insight into their
can provide helping business owners to bring their
motivations, the drivers for success and how their
ambitions to life.
approach and incentive to achieving it differs from
men.
As a bank and indeed for society in general, it is
important to understand what motivates business
Identifying the different behaviours of female and
men and women, what challenges they face, and what
male business owners is imperative, and enables
lessons we can learn from their approach to business
the industry to create an optimum environment to
that can be shared more widely for future growth.
support this valuable economy, which in turn will
boost economic growth.
John Winter
Chief Executive Officer
Corporate Banking, Barclays
Barclays Entrepreneurship
Index March 2015
1
5
Headline Findings
We polled and interviewed just over 500 C-suite executives and entrepreneurs from UK businesses
reporting an annual turnover in excess of £2 million, spanning a variety of sectors and industries.2 3
Female Ambition
Though it is often assumed that women
want to run “lifestyle” businesses,
both men and women showed a strong
appetite for growing the businesses they
own or manage.
Women are underrepresented in entrepreneurship
globally. Yet women showed greater entrepreneurial
ambitions than their male counterparts in this sample
of professionals.
•
•
very or extremely interested in starting another
are executives stated that they are very
business in the next three years, compared to more
or extremely interested in growing
than 47% of female entrepreneurs.
their business in the next three years.
•
Less than 18% of male entrepreneurs say they are
90% of men and 92% of women who
•
69% of female C-suite executives are very or
Among entrepreneurs, 82% of men
extremely interested in starting a business in the
and 83% of women report being very
next three years, compared to 29% of their male
to extremely interested in growing
counterparts.
their business in the same time frame.
A Different Model of Growth
Women explained that they are as growth-oriented as their male counterparts, but characterised the
execution of growing their business in a different way. They strive for steady, profitable growth trajectories
often preferring to re-invest business profits over equity investment to scale sustainably, and tend to think of
male entrepreneurs as more concerned with fast growth and a quick exit.
Perhaps because they are more
concerned about sustainable growth,
women are more aware of potential
barriers to growing their businesses
and mitigating risks compared to
their male counterparts.
•
Although men and women cited
the same top barriers to growth,
women cite twice as many barriers.
6
Moreover, women and men equally rate their business skills, but
women are more likely to see the need to acquire more knowledge
or skills and the reach of their networks as barriers to growth.
•
20% of women report their knowledge of markets as
insufficient compared to 9% of men.
•
17% of women report that their technical knowledge was
lacking, compared to 5% of men.
•
27% of women saw the strength and reach of their networks
as an obstacle, compared to 9% of men.
Risky or Reckless
Supporting Entrepreneurs
Women see risks differently, but like the
men in our sample, they are very much
In terms of support, women from both
the executive and entrepreneur groups
emphasised that workshops and events
must be personalised and relevant. They
want to meet people from similar sectors
or business sizes who are facing similar
problems.
risk-takers.
•
91% of women and 86% of men report
that others would describe them as
fearless in the face of failure.
•
87% of the women in this group see
Our research found that both men and
women are interested in professional
networks and industry specific events
and seminars. However, when it comes to
gaining tailored suppport, men turn to a
trusted council or “advisors”, whilst women
prefer education or to be “coached”. Thus
similar support services should be framed in
different ways to appeal to both men and
women.
themselves as financial risk-takers,
compared to 73% of men.
•
80% of women say they see opportunities
where others might see risk, with 67% of
men reporting the same.
The decision to take risk will be influenced
by how one views current business health.
Women are more modest than men when
it comes to evaluating the track record
of their businesses. Over-confidence is
often cited as the Achilles heel of the
entrepreneur, and women seem to be less
prone to this tendency.
•
Though women report interest in
networking events aimed specifically at
women, they say it is difficult to find other
high-achieving professionals at these
events. Entrepreneurial networks and
events should strive for gender balance in
their invitations.
62% of male entrepreneurs say their
The women we researched stressed that
it was essential to treat them based on
business achievements rather than on
gender expectations. When considering
support for entrepreneurs to start and
grow a business, we ask all stakeholders to
generate activity around entrepreneurship
that is gender intelligent.
businesses are prospering compared
to 42% of women, despite the fact that
the female-run business in our sample
report higher profit before tax.
Though these women are willing to take
risks, they are also more sensitive to risk.
•
92% of women report that they are
good at both identifying and mitigating
risks, compared to 88% of men.
•
24% of women said it was a bad time to
We surveyed 483 C-suite executives and entrepreneurs.
The polling was supplemented with 20 phone interviews
with female entrepreneurs and an online focus group with
eight participants.
2
take on risk due to personal finances,
with 6% of men reporting the same.
•
18% of women will report that a risk is
C-suite executives denotes a corporation’s most highranking executives, typically with a title beginning ‘Chief’
3
unlikely to pay, compared to 6% of men.
7
8
Introduction
Entrepreneurship is riddled with stereotypes. This is particularly true
for female entrepreneurs. For instance, women starting businesses
often attract specialised labels or epithets such as “mumpreneurs”,
“fempreneurs” and even “lipstick entrepreneurs”.
The mere existence and continued use of feminised
perceptions of gender differences in risk-taking, and
descriptions of entrepreneurship fuels the perception
attitudes among women in business.
that entrepreneurial activity is a largely male preserve.
Such stereotyping has an impact. The majority of the
Yet this report aims to refrain from sweeping
women interviewed for this research did not identify
generalisations. This report is not about biology.
with the title “entrepreneur”, often seeing it as a
Instead, we draw from the data and research to discuss
loaded term. Instead, many of the women surveyed
the social and historical context in which both male
preferred terms such as “founder” or “business
and female entrepreneurs work. We remind readers
owner”.
that the findings are the result of averages: many will
find their own experiences differ. Often, there is more
For them, they said it was about growing a profitable
variation within the genders than between them.
business and providing stability for their employees.
One said, “It isn’t about becoming the next Richard
We also stress that we have focused our research on
Branson”.
a highly successful group of C-suite executives and
entrepreneurs. They are those who have made it
This is a serious point about the UK economy. If women
beyond the startup phase of the business lifecycle and
started businesses at the same rates as men, there’d
are running an established firm. At times, some of the
be one million more entrepreneurs in the UK. And
gender differences that have been observed in the
while the number of women in entrepreneurship is on
general population extinguish or reverse among this
the increase, this study uncovers that there is clearly
group.
4
more that can be done to remove the unconscious bias
– and even blatant sexism – from entrepreneurship: the
Our hope is that this in-depth, empirical look at gender
very sector that generates the highest number of most
and entrepreneurship will provide policymakers,
new jobs, and fosters nearly all of the growth in the UK
investors, the media, entrepreneurs themselves – as
economy.
well as those considering entrepreneurship – with the
evidence to look beyond the stereotypes regarding
The aim of this report is to unravel how gender
what makes a successful entrepreneur. Gender
influences entrepreneurship. There will be a particular
intelligence is our aim, and we have developed
focus on the perspective and experience of women
recommendations for stakeholders regarding
entrepreneurs. We discuss the entrepreneurial
embedding such intelligence in their support for
ambitions among men and women, as well as
entrepreneurs.
This figure is calculated using the Global Entrepreneurship Monitor’s figures for Total Entrepreneurial Activity (TEA). TEA
is calculated as the proportion of the working age population either in the process of starting a business or running a new
business. In 2012, the TEA rates were 6.3% of women and 11.6% of men. Multiplying this by the total female working-age
population (using ONS’ Labour Market Statistics, this is currently 20.2 million women) and calculating the gap between the
current TEA rate for women and the rate for men, the difference is 1.07 million entrepreneurs.
4
9
Methodology
We conducted survey research on 483 C-suite executives
and entrepreneurs from UK businesses demonstrating an
annual turnover in excess of £2 million, spanning a variety of
sectors and industries. Recruitment and data collection was
conducted by Research Now and through entrepreneurial
networks, WEConnect and Enterprising Women. The
polling was supplemented with 20 phone interviews with
female entrepreneurs and an online focus group with eight
participants, conducted by YouGov.5,6
There were 180 CEOs and 105 respondents
who described themselves as “other C-suite
executive”.
5
For all figures on business and personal
characteristics we use the median
6
10
C-Suite Executives
Entrepreneurs
483
Entrepreneurs and C-Suite Executives
for UK companies with an annual
turnover greater than £2 Million
78 Female
181 Male
Plus: 20 interviews
8 in focus group
102 Male
Entrepreneurs
122 Female
C-Suite Executives
Business Characteristics
Business Characteristics
Profit before tax: £500,000
Profit before tax: £500,000
Employees: 50
Employees: 151
Years since founding: Men 15 / Women 8
Years since founding: 15
Personal Characteristics
Personal Characteristics
Age: Men 55 / Women 37
Age: 47
Income: £150,000
Income: £120,000
Net worth: £1,500,000
Net worth: £1,000,000
11
The State of Play
Two macro trends are in play: a rise in the number of people entering
into entrepreneurship, and women continuing to increase their
economic clout.
The number of active companies in the UK increased
newer businesses. Female entrepreneurs were 18
by 3.7% in the second half of 2014 to form almost 3.1m
years younger than the median male entrepreneur
companies, the second highest rise in the past three
in our sample, and the businesses led by women
years. The UK’s start-up activity remains very strong
are 7 years newer than the median of the male-
with total early-stage entrepreneurial activity (TEA) in
led businesses. But there is still a long way to go.
the UK rising to 8.6% of the working-age population
According to the most recent OECD data, there is
(18-64 years), up from 7.3% in 2013.8
a gender gap of almost 50% in entrepreneurship in
7
the UK. Among those either in the process of starting
Record numbers of women are now in the British
a business or running a new business, the rate for
workforce following an increase of nearly 800,000 over
women was at 7.5% in 2014, lagging behind the rate
the last four years.9 More women than ever before
for men, which was 13.5%.
are on the boards of the UK’s largest companies,
with the FTSE 100 on track to hit a quarter female
Women-led small and medium-sized enterprises
representation this year.10
already add £70 billion to the UK economy. As they
scale-up, it is imperative that we recognise women
Looking at the profiles of the businesses we surveyed,
who are entrepreneurial role models to help fill the
we found the women to be younger and running
remaining gaps.
Fig 1.0
Percentage of Female FTSE 100 Directors
23.6%
20.8%
17.3%
15%
11.7%
12.2%
2008
2009
12.5%
9.4%
6.2%
1999
12
2004
2010
2011
2012
2013
2014
Shattering Stereotypes
To understand the attitudes and aspirations of those poised to be founders of successful businesses, or already
leading a growing enterprise, we have focused our research on a highly successful group of C-suite executives
and entrepreneurs. They are those who have made it beyond the startup phase of the business lifecycle and are
running an established firm.11 This allows us to understand their journey from the challenges in their first year of
business, beyond their first million, and looking to the future.
Both men and women show a
50
We asked this group about their ambitions
44.3
40
Executive
show aC-Suite
strong appetite
for business growth,
business/company in the next 3 years?
50
to grow their own business (or the businesses
they lead), and found both men and44.8
women
How interested are you in growing your
Fig 2.0
strong appetite for growth
50.0
47.5
47.5
47.4
44.8
C-Suite
Executive
Entrepreneur
40
with no significant gender differences. 90% of
growing their business in the next three years.
Among entrepreneurs, 82% of men and 83%
20
of women report being very to extremely
Percentage
say they are very or extremely interested in
44.8
36.0
Female
32.4
30
20
interested in growing their business.
10
12.8
10
During the course of our research, we found
10.3
7.2
6.4
that there is a perception that
4.9women
1.1
0
Not at all
2.2
2.0
1.1
3.2
are running “lifestyle” or “kitchen-table”
0.0
Slightly
Moderately
Very
0
0.0
0.0
businesses, but aren’t serious about growth.
Extremely
Though such entrepreneurial activity is
50 Growth
Interest in
Not at all
2.9
2.2
7.2
4.9
3.2
Slightly
Moderately
44.8
C-Suite Executive
40
assumption that women-led companies
Women show a greater range of
growth ambitions
Very
Extremely
Not at
47.5
to be encouraged, our data shatters the
aren’t interested in scaling up.
2.0
Interest in Growth
undoubtedly rising in popularity and is
44.3
44.8
Male
Percentage
Percentage
30
44.3
Male
Male
men and 92%
of women who are executives
Female
44.8
Female
30
20
The research explored the areas of
how entrepreneurs and executives are
interested in growing their business. Among
10
7.2
entrepreneurs, women show a greater
range of growth ambitions, including both
domestic and international growth, and
through the entry of new products and
1.1
0
0.0
Not at all
2.2
3.2
Slightly
4.9
2.0
0
Moderately
Very
Extremely
Not at
Interest in Growth
price points.
13
Fig 3.0
In what ways are you interested in growing your
business/company in the next 3 years?
13.4
C-Suite Execs
Expansion into
new price points
Expansion into new
product offerings
Male
36.0
Female
18.0
Entrepreneur
38.5
52.0
C-Suite Execs
52.5
47.0
Entrepreneur
Expansion into
international markets
59.0
57.0
C-Suite Execs
63.1
49.0
Entrepreneur
64.1
62.6
C-Suite Execs
43.3
Expansion into other
domestic markets
47.0
Entrepreneur
57.7
0
10
20
30
40
50
60
Women show greater entrepreneurial ambitions
Both the entrepreneurs and
own businesses: 69% of female
executives were asked about their
executives compared to 29% of
entrepreneurial ambitions. We
male executives. Interviews with
found that less than 18% of male
female entrepreneurs found that
entrepreneurs say they are very
those who had started businesses
or extremely interested in starting
after holding a senior corporate
another business in the next three
position did so because their
years, compared to more than 47%
corporate roles gave them the
of female entrepreneurs.
experience and financial security
to strike out on their own. The
14
What is maybe more striking is
qualitative research also concluded
the percentage of women in the
that former executives had the
C-suite who would like to start their
most ambitious growth plans.
Volume 6 - Barclays and BGF
Entrepreneurs Index , March 2015
7
GEM 2014 Global Report - Global
Entrepreneurship Monitor
8
The Independent, More women are
in work in Britain than ever before,
2014
9
Fig 4.0
Are you interested in starting a business
(or another business) in the next 3 years?
17.7%
29.3%
Very /
Extremely
Very /
Extremely
Male
C-Suite
Executive
Male
Entrepreneur
47.4%
68.9%
Very /
Extremely
Very /
Extremely
Female
C-Suite
Executive
Female
Entrepreneur
This greater appetite for entrepreneurship flies in the
face of stereotypes. It can be interpreted as either
a greater desire among these highly accomplished
women to start a business, or it may be evidence of an
ambition gap where men are more likely to have leapt
into entrepreneurship, and women are held back by
particular barriers. In fact, although men and women
cite the same top barriers to growth, women report a
http://www.boardsforum.co.uk/
boardwatch.html
10
For this research, we mean that they have
reached at least £2 million turnover
11
DCMS, Secondary Analysis of the Gender
Pay Gap, 2014
12
higher number of barriers. These will be discussed in
more detail later in this report.
15
Female entrepreneurs earn
more than men
research on gender pay gaps. However, this does
When looking at the median wage of all workers in
the perhaps ingrained barriers in other sectors.
appear to be clear evidence that entrepreneurship
provides women with an opportunity to break through
the UK, women still make 19.7% less than men. Yet
there are signs that entrepreneurship is bucking this
trend. Previous research supports the existence of a
12
reverse pay gap among entrepreneurs, where women
are out-earning their male counterparts. It found that
female entrepreneurs earn 17% more than their male
counterparts. By contrast, among executives, women
Overall, we found that both men and women in this
group are ambitious about growing their businesses in
the near future. Both are interested in starting another
business or making the entrepreneurial leap from the
corporate world. However, women show higher rates
of interest in starting a business (or another business),
were making 21% less than men.13
especially among C-suite executives. But this report
In our sample, we replicate this finding. The median
examine some of the factors that enable entrepreneurs
isn’t just about ambitions. In the next sections we will
income showed women entrepreneurs take home
twice that of men. We report these findings with
caution, as they are in conflict with the majority of
and executives to grow their business, and better
understand how gender issues may help or impede
them.
£250,000
£127,000
£110,000
£125,000
Male
Female
Male
C-Suite Executives
Fig 5.0
16
Female
Entrepreneurs
Respondents’ annual incomes show a typical pay gap
for executives, but a reverse pay gap for entrepreneurs
Delusions of Gender
People expect entrepreneurs to have certain qualities and
behaviours such as risk-taking and an ability to innovate. But
these same characteristics may be valued differently when
displayed in men versus women. Take two examples.
A study from Harvard, the University of Pennsylvania
harsh judgement. When the business plan was highly
and MIT looked at the role of gender in
innovative, this bucked gender stereotypes of women
entrepreneurial pitches. They played hundreds of
being less bold and risk loving. The author concludes,
identical pitch presentations to groups of investors,
“women entrepreneurs may need to demonstrate
but changed whether they had a male or female
more evidence of entrepreneurial ability than their
narrator. When investors were asked to pick which
male counterparts do. By introducing an innovative
ones they thought would be successful, male narrated
business model, a woman entrepreneur signals a level
presentations were 40% more likely to be picked
of agency that is not expected for women in general,
to receive funding than those narrated by women.
but that better fits the masculine stereotype of the
In a follow-up experiment, evaluators particularly
‘entrepreneur’ ”.15
favoured pitches from “attractive” men, whereas
attractive women were perceived worse than both
“unattractive” men and women.14
A similar study from the University of California Santa
Barbara had participants evaluate business plans and
Both men and women see the world
through a gendered lens. Investors,
policymakers and the rest of the
manipulated whether the name of the entrepreneur
entrepreneurial community should
was male or female. Female entrepreneurs were
begin to recognise and adjust for
rated as less competent than their male counterparts
and their business plans received less (hypothetical)
these biased perceptions.
investment. There was a way for women to escape this
Barclays Wealth and Investment Management,
Understanding the Female Ecomony: The Role of Gender
in Financial Decision Making and Successing Planning for
the Next Generation, 2013
13
Brooks, A. W., Huang, L., Kearney, S. W. & Murray, F.
E., Investors prefer entrepreneurial ventures pitched by
attractive men, 2014.
14
Thebaud, S., Status Beliefs and the Spirit of Capitalism:
Accounting for Gender Biases in Entrepreneurship and
Innovation, 2015.
15
17
Risky or Reckless
In the 18th and 19th centuries, wealthy aristocratic women were
often investors, speculators and gamblers. These were seen as
risky activities, and risk-taking was associated with women and
femininity. Risk was described as “a woman’s lack of self control”
and their propensity to act on “irrational whims”. As financial
dealings became formalised through the 19th and 20th centuries
with protocols and regulations, the stereotypes around gender and
risk shifted, and men have predominantly filled these roles.16
Women are proud of their
approach to risk
Male 88%
Today, women are seen to be more risk
averse than men and there is evidence
to support this perception. Economic
experiments estimate women are 20%
more risk averse than men.17 Risk-taking
I am good at
identifying and
mitigating risks
and over-confidence are the two most
Female 92%
Male 67%
persistent gender differences across
numerous studies. However, there is a
18
danger in making assumptions across the
board. Female financial professionals, e.g.
fund managers, have an appetite for risk
more similar to men. Similarly, the women in
Where others see
risks, I often see
opportunities
our survey of executives and entrepreneurs
Female 80%
Male 73%
rate themselves slightly higher than men on
statements like “I am a financial risk-taker”
and “People I work with would say I am
fearless in the face of failure”.
I am a financial
risk-taker
Fig 6.0
Female 87%
Male 86%
Typical gender differences
regarding risk are reversed for
these female professionals
18
Colleagues would
say I am fearless in
the face of failure
Female 91%
92% of women report that they are good
at both identifying and mitigating risks,
compared to 88% of men. 80% of women
say they see opportunities where others
might see risk, with 67% of men reporting
Fig 7.0
What are the obstacles you see in growing
your business? (approaches to risk)
the same. 87% of the women in this group
see themselves as financial risk takers,
Male 6%
compared to 73% of men. 91% of women
and 86% of men report that others would
describe them as fearless in the face of
failure.
Bad time due
to poor finances
Female 24%
When talking about taking risks, the
Male 6%
women we interviewed were proud of
their ability to take calculated risks but
they also tended to judge risk differently
than men. They are more sensitive to risk
and cite it as a barrier to growing their
businesses. 24% of women said it was a
Risk is
unlikely to pay
Female 18%
bad time to take on risk due to personal
finances, with only 6% of men reporting
Male 8%
the same. 18% of women will report that
a risk is unlikely to pay, compared to 6%
of men.
Don’t see a
promising opportunity
Female 13%
Marlow, S. and Swail J., Gender, risk and
finance : why can’t a woman be more like a
man?, 2014
16
Croson, R. and Gneezy, U. Gender
Differences in Preferences, 2009
17
Atkinson, S., Boyce Baird, S. and Frye, M.
Do female mutual fund managers manage
differently?, 2003.
18
19
Men rate their businesses as more successful
However, men and women in this sample
It’s important to ask why this might be. Arguing that
seem to calibrate success differently. Just
women are less confident and that men are over-confident
as men were less likely to worry about risks
is simplistic. The women in this sample did not lack
in the environment, when asked to rate
confidence. In fact, they showed a high level of confidence,
the success of their business over the past
one even going as far as to refer to herself as a “genius”.
three years, male entrepreneurs were highly
skewed towards “prospering” while female
entrepreneurs showed a roughly normal
Investors should be alert to how over- and
distribution with a slight skew towards
under-confidence can skew business owners’
“struggling”. This difference is particularly
perceptions of the health of their businesses.
striking because the women-owned
businesses in our sample were not struggling
They must calibrate success potential with
more than businesses run by men. On the
objective measures rather than relying on
contrary, the women-owned businesses
perceptions.
happened to have higher profit before tax.
Fig 8.0
How would you rate the success of your
business/company over the past 3 years?
40
40
35
35
30
30
31.4
30.0
26.9
% Percent
25
28.2
27.5
25
20
20
18.0
15
15
14.1
12.8
10
10
8.8
5
5
0
0
Struggling
20
Holding Steady
Prospering
2.0
Struggling
Holding Steady
Prospering
Women see themselves as growing their businesses, but in a different way
As mentioned previously, the women
The women interviewed say they
interviewed said they take a different
consider a wide range of factors when
approach to risk and growth than how
it comes to growing their business.
they think of male entrepreneurs. They
Many focus strongly on corporate
explained that they are as growth-
responsibility and their contribution to
oriented as their male counterparts,
society and their local area. Very few
but characterised the execution of
are willing to risk staff for the sake of
growing their business in a different
growth. They explained:
way. One woman in our research said:
“There’s a lot of talk about
high growth and, generally,
that puts women off because
it’s a bit bloke-y, it’s a bit
.com-y and I think women
are more concerned about
sustainable growth.”
“Would I make a decision that
risks the entire company? No,
that would be a bad risk.”
“I have to think about his [coget out now if I was by myself.”
calculated approach to risk, consider
growth:
a quick sell. The exit stage didn’t seem
to be on their radar.
ambitions, women used different
words to describe their business
men’s business goals. They used
familial words, nature imagery, and
talked about the freedom provided
by entrepreneurship to talk about
themselves:
“(My business) is like a child
“It’s got to be managed
growth, profitable growth
that’s achieved in a way that
doesn’t knock people off
their perches.”
turning the baby into a
teenager.”
“grows organically”
multiple factors for growth and aim for
more concerned with fast growth and
When describing their growth
growing up...it was about
planning, managing and controlling
tend to think of male entrepreneurs as
growth.”
owner’s] livelihood … I could
Often, the women said they take a
growth trajectories to be steady, and
important thing, but profitable
goals versus how they perceived
Additionally, they talk about
controlled growth. They perceive their
“Growing is the most
“It’s happened naturally. It’s a
product that arrived quietly.”
“It’s not money that matters,
it’s freedom.”
Words like “aggressive” and “gung-ho” were used
be judged on gender expectations, but business
alongside assumptions that male entrepreneurs
success. This requires the public, policymakers,
could act recklessly.
investors, the media, and entrepreneurs
themselves to fight any remaining biases about
So what’s normal: how should entrepreneurs judge
both men and women pursuing entrepreneurship.
business health or approach risk? It is problematic
that we calibrate confidence and risk-taking
There is a need to recognise that entrepreneurs are
using a masculine norm. Speaking at the First
not a homogeneous group and there are different,
Women Summit, a panelist argued that women
but still successful models of growth. Women are
entrepreneurs “don’t over-promise and then under-
quite willing to take risks but they are also more
deliver”. If this is true, what was apparent from the
sensitive to risk and this vigilance can be an asset.
women we spoke to was that they did not want to
21
Fig 9.0
What are the obstacles you see in growing your business?
31%
Team
capabilities
27%
High level of
competition
23%
Already
dealing with
rapid growth
22%
Difficulty
accessing
capital
22
Women see more barriers
In addition to unconscious
bias, women may experience
additional barriers when
starting and growing a
business. There is a need for
nuance, and to understand
that women have strong
growth and entrepreneurial
ambitions while recognising
they see and experience
barriers to growth.
Although men and women cited the
same top barriers to growth, women
cited more obstacles. On average,
male entrepreneurs cited 2.7 barriers,
whereas women cited 4.6.
Fig 10.0
Number of obstacles cited
Male
C-Suite Executive
2.9
4.1
Female
0
6
2.6
Entrepreneur
Male
4.6
Female
0
Fig 11.0
6
Number of obstacles cited in first year of business
3.0
Entrepreneur
Male
5.2
Female
0
6
23
It is clear that women are interested in building
Fig 12.0
their competencies in a number of areas. Interviews
What are the barriers you see in growing
your business? (knowledge and networks)
revealed that women want solution-oriented
education. Later we will discuss the particular types
of education and support that are in high demand
from women.
Male 9%
Networks can be an enormous source of
knowledge, or at least a means to make contact
Knowledge of
new markets
Female 20%
with the right hire to fill a competency gap. When
asked about their network, 27% of women saw the
strength and reach of their networks as an obstacle,
Male 5%
compared to 9% of men.
Though there has been an explosion in women’s
Technical
knowledge
Female 17%
networks which has been a great asset for women,
this may not be a sufficient. Interviews revealed
that women found great difficulty finding women’s
Male 9%
events in which they could network with industry
leaders. In our sample of successful women, only
33% of their key mentors and influencers were other
women. This figure was only 3% among the men.
Stength of
network
Female 27%
Given this, high-level entrepreneur networks must
include experienced influential men and women if
women are to advance. Increasing the visibility of
successful women at entrepreneurship events could
Women want to build their knowledge
and their networks
have a great impact on perceptions around gender
Both executives and entrepreneurs were asked
women on public panel debates.
and entrepreneurship. For instance, it’s important
for both men and women to see high-achieving
about barriers to growth relating to their soft skills,
technical skills and their areas of expertise. Though
women rated their business skills as highly as men,
they were more likely to see insufficient knowledge
kind of support should see events
as a barrier to growth. For instance, 20% of women
geared specifically toward women
report their knowledge of markets as insufficient
compared to 9% of men. 17% of women report that
as an important first step, but focus
their technical knowledge was lacking, compared
efforts on achieving a 50:50 gender
to 5% of men. Across almost every type of skill or
knowledge area, women saw up-skilling themselves
as a means to furthering their business.
24
Therefore, those who provide this
balance in the wider entrepreneurial
networking community.
Beyond business, there are lifestyle
factors in play
As you would expect, women are more likely to cite
childcare as a barrier to growth. Though this is not
as high as you might expect – only 17%. Women are
also more likely to support their spouse’s business
endeavours, both in terms of time and financial
commitments, and are three times more likely to cite
this as an obstacle when they are starting up their own
businesses (5% of men vs. 24% of women).
We also found evidence that entrepreneurship enables
women to have children, more so than the C-suite.
Female executives are less likely than male executives
to have children at home or in university, but the reverse
is true among entrepreneurs. 55% of C-suite executives
have no dependents, compared to 42% of female
entrepreneurs.
Among professional, time-constrained women,
entrepreneurship can enable women to have children in
comparison to senior corporate positions. While we do not
suggest entrepreneurship makes childcare easier, it at least
offers women the autonomy to set their own schedules.
25
Support for Entrepreneurs
To help make their ambitions a reality and overcome
barriers to growth, we asked executives and
entrepreneurs about their interest in various types
of educational and networking events and services.
for entrepreneurs should think about
the language used so they are not
exclusionary.
Most emphasised that support must be personalised.
Relevance is also key for entrepreneurs. They want to
Furthermore, support should recognise the need to
meet people from similar sectors or business sizes who
support women specifically, but without singling them
are facing similar problems. There is a big difference
out as women. The overwhelming majority of the
between female micro businesses and those running
women interviewed felt that acknowledging their gender
enterprises like those in our research. In fact, they can
diminished their accomplishments, i.e. suggested that they
be sceptical (and even hostile) to being grouped with
were successful for a woman. Similarly, they felt special
women if this includes smaller businesses they share little
services for women implied that they might need help
in common with.
because of their femaleness. This is a delicate balance. One
entrepreneur explained:
Our survey found that both men and women are
interested in networking events, industry-specific
roundtable discussions, members-only business
“It’s always nice to meet other female
networks, and educational seminars. Interestingly,
entrepreneurs, but should a financial package be
men showed a preference for a board of advisors and
tailored to just one sex? No, I don’t think it should”
consultants for advice, whereas women showed a
preference for coaching and mentors for education.
There is a slight and subtle difference here, that should
be kept in mind by service and support providers.
Additionally, this audience can be sceptical (and even
hostile) to being grouped with women if this includes
Again, supporters should understand
that in the scale-up phase, women
smaller business that they share little in common with. For
instance:
focus on long term sustainability of the
business, not simply rapid growth to
“I don’t really think about the fact that I’m a
position themselves for exit. Education
female. I know I’ve won a couple of awards for
and networking support are as important
as access to funding. They should also
ensure networking and roundtables
females in business but I’ve decided not to enter
any more competitions that are just female. I really
think I should be compared to everybody and I
don’t see why I shouldn’t be.”
have appeal by making them relevant
by sector and business size, and being
solution-oriented. Because some
entrepreneurs prefer “consultation”
and some prefer “education”, those
who provide event and support services
26
In the next section we draw upon the research findings,
coupled with interest in the support services mentioned
above, to make a series of recommendations to embed
gender intelligence in entrepreneurial activities. This means
both removing and correcting gender-related biases.
Fig 13.0
Most popular services and support offerings
Popularity among men
Networking events
Roundtable discussions on
industry issues
Popularity among women
Networking events
In-person educational seminars
In-person discussion groups of
Roundtable discussions on
peers (e.g. an informal personal
industry issues
board of advisors)
Key speaker presentation
Members-only business networks
Volunteer advisors or consultants
Executive coaching
on company board
Members-only business networks
In-person educational seminars
Key speaker presentation
Online educational seminars
Carter, Ram, Trehan & Jones‘Diversity
and SME’s’ Enterprise Research Centre
White Paper No. 3; 2013
19
27
A Call to Action
The women we researched stressed that it was essential
to treat them based on business achievements rather than
on gender expectations. When considering support for
entrepreneurs to start and grow a business, we ask all
stakeholders to generate activity around entrepreneurship that
is gender intelligent. We make the following recommendations:
Policymakers, investors and funders,
the media, entrepreneurs themselves
- as well as those considering
entrepreneurship - should:
Assume women have strong growth ambitions,
while recognising that they see and experience
more barriers to growth.
Adjust for biased perceptions about the
ambitions and competency of women.
Entrepreneur support and service
providers should:
Understand that in the scale-up phase, women
focus on long term sustainability of the business,
not simply rapid growth to position themselves
for exit. Education and networking support is as
important as access to funding.
Ensure events and seminars have appeal by
making them relevant by sector, business size,
and solution-oriented.
Be alert to how over- and under-confidence can
skew business owners’ perceptions of the health
of their businesses. They must calibrate success
potential with objective measures rather than
relying on perceptions.
Understand women are quite willing to take risks,
but they are also more sensitive to risk, and this
vigilance can be an asset.
Be mindful of the language and style adopted,
so as not to be exclusionary, because some
entrepreneurs prefer “consultation” and some
prefer “education”.
See events geared specifically toward women
as an important first step, but focus efforts on
achieving a 50:50 gender balance in the wider
entrepreneurial networking community.
Recognise that entrepreneurs are not a
homogeneous group and that there are different,
but still successful models of growth.
28
And finally, there is reason to
celebrate. Women-led small and
medium-sized enterprises already
add £70 billion to the UK economy.
As they scale-up, it is
imperative that we recognise
and support women who are
entrepreneurial role models to
help fill the remaining gaps in
entrepreneurship.
29
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